Give
the quarterly investment statements you receive more than a glance. If there is
a mistake, you have a chance to spot it now instead of having to find it later.

Last week’s riddle:

You hold a sheet of cellophane. Fully unfolded, it is 3 feet long
by 2 feet wide. How can you get two people to stand on it (when it is fully
unfolded) in such a way that they can't touch or see each other?

Last week’s answer:

Slide the fully unfolded sheet under
a door (or a sufficiently large partition that is not transparent or opaque)
and have each person stand on the sheet while on either side of the door or
partition.

WEEKLY RIDDLE

It can be told, made, cracked, and played. What is it? (Think you know the answer? Share it below!)

FED OUTLINES END FOR STIMULUS, STOCKS
SLIP

Last Wednesday, Federal Reserve Chairman Ben Bernanke shared
the central bank’s vision for winding down its current aggressive easing effort
– the potential tapering of QE3 by late 2013, and the end of the program by
mid-2014 if economic conditions permit. Wall Street reacted abruptly – the Dow
sank more than 550 points in less than two trading sessions. In the near term,
the Fed will keep buying $85 billion in bonds per month and maintain interest
rates at near-zero levels.1,2

INFLATION PRESSURE MINIMAL IN MAY

The
0.1% rise in the Consumer Price Index last month put yearly inflation at 1.4%, well
under the Fed’s 2.0% target. Energy prices rose 0.4% in May but fell 1.0% in a
year; medical costs declined 0.1% for May, the first monthly decrease since
1975.3

EXISTING HOME SALES IMPROVE

The
National Association of Realtors reported a 4.2% jump in residential resales
for May, with the annualized sales pace topping the 5 million mark for the
first time in 3½ years. From May 2012 to May 2013, the median price of an existing
home rose 15.4% to $208,000 as the number of listings on the market shrank
10.1%.4

LEADING INDICATORS EDGE NORTH 0.1% IN MAY

Slight
improvement was seen in the Conference Board’s latest barometer of the economic
outlook for the next 3-6 months, but economists surveyed by Bloomberg thought
it would rise 0.2%. April’s gain was revised up to 0.8%.4

A WILD RIDE FOR STOCKS

Volatility
was rampant last week on Wall Street, and so were losses. In five days, the
S&P 500 slipped 2.11% to 1,592.43, the Dow lost 1.80% to 14,799.40 and the
NASDAQ fell 1.94% to 3,357.25.5

THIS WEEK: Nothing
major is scheduled for Monday. Tuesday brings the April Case-Shiller and FHFA
home price indices, the Conference Board’s June consumer confidence poll,
reports on May hard goods orders and new home sales and earnings from Lennar,
Carnival, Walgreens and Barnes & Noble. Wednesday, the Bureau of Economic
Analysis publishes its final estimate of Q1 GDP, and earnings arrive from
Monsanto, Bed Bath & Beyond and General Mills. The latest initial jobless
claims figures come in Thursday, along with NAR’s report on May pending home
sales, the Commerce Department’s report on May consumer spending and earnings
news from KBHome, ConAgra, Nike and Accenture. Friday brings the final June
University of Michigan consumer sentiment survey and earnings from Blackberry.

Contacts

Securities and investment advisory services offered through NEXT Financial Group, Inc., member FINRA/SIPC. To view NEXT Financial Group’s privacy policy and other important information, visit the "Customers" section of www.nextfinancial.com. To check the background of any investment professional, visit www.BrokerCheck.org. Although Capital Consulting Group & TwinCitiesRetirement.com are affiliated, they & CLS Investments are not affiliated with NEXT Financial Group, Inc. Investment products and services available only to residents of: Minnesota, Arizona, California, Florida, Kentucky, New Hampshire, North Dakota, Ohio, South Carolina, South Dakota, Texas, Tennessee, and Wisconsin. NEXT Financial Group, Inc. does not offer tax or legal advice. Please consult your tax or legal professional before taking any action.

There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. Diversification cannot assure a profit or protect against a loss in any given market environment. An investment in a portfolio strategy is subject to investment risk, including possible loss of principal. The investment strategy of the funds used may include investments in foreign securities, small & medium sized companies, as well as funds that concentrate in one specific asset class, all of which may increase the risk and volatility of the funds. Consider the investment objectives, risks, charges and expenses of the portfolio carefully before investing. This information should not be construed as an offer to sell or a solicitation or an offer to buy any security.

The information presented here does not consider your particular investment objectives or financial situation nor does it make personalized recommendations. This information should not be construed as an offer to sell or a solicitation of an offer to buy any security. The investment strategies may not be suitable for you. Individuals should contact their own tax professionals and attorneys to help answer questions about specific situations or needs prior to taking any action based on this information. We believe the information provided is reliable, but do not guarantee its accuracy, timeliness, or completeness. Any opinions expressed herein are subject to change without notice.

Past performance is not a guarantee of future results.

* In order to claim your complimentary cruise, you must be an existing client of Capital Consulting Group, or you must have been referred by an existing client. Limit 1 ticket per survey response per year. Limit 2 tickets per household per year. Must be 30 years of age.